Question 1

What type of license will you receive if you have a supervising broker at the time of application?

Options :

A : Active license

B : Brokers license

C : Firm license

D : Inactive license

Answer: A

Question 2

What zoning action reduces density or development intensity?

Options :

A : Bulk zoning

B : Density-reduction zoning

C : Downzoning

D : Reduction zoning

Answer: C

Question 3

Why are legal descriptions required in real estate contracts?

Options :

A : To calculate the exact property taxes owed by the new owner

B : To ensure the piece of property can be clearly identified from all other properties

C : To establish the legal boundaries for future construction on the property

D : To guarantee the buyer is receiving the exact property they believe they are purchasing

Answer: B

Question 4

The cost approach to finding an appraised value measures which of the following?

Options :

A : The cost to acquire land and construct a reproduction

B : The cost to acquire land only

C : The cost to construct a reproduction only

D : The expenses the property is expected to produce for the owner

Answer: A

Question 5

Which of the following best describes the concept of appreciation?

Options :

A : When a property's value increases as a result of capital improvements.

B : When losses are deducted from a property's value for tax purposes.

C : When the value of a property decreases over time.

D : When the value of a property increases over time.

Answer: D